Fabio Capello is to remain as England manager. The Football Association confirmed the news this afternoon, bringing a swift end to speculation about the Italian's future.

The decision was taken following a meeting of the four-man Club England board, which decided unanimously to keep Capello, despite England's woeful performance at the World Cup.

The full Football Association board subsequently ratified the recommendation, which means Capello will now continue in his £6m-a-year role until the end of Euro 2012.

"Sir Dave Richards has called me to tell me everyone at the FA wants me to continue," said Capello. "I explained it is very important we use the disappointment as a motivation in the future.

"I can assure the fans I am now fully focused on our European qualifying fixtures, starting with the friendly against Hungary in August. I am more determined than ever to succeed with the England team."

Capello can now continue with the holiday he went on within hours of his arrival back in London, and start preparing for the friendly with Hungary on 11 August and then the Euro 2012 qualifying programme, which starts with a home game against Bulgaria on 3 September.

The 64-year-old has already offered a list of players who were not in South Africa who can hope to be involved, including Manchester City winger Adam Johnson, and Arsenal's Theo Walcott, Kieran Gibbs and Jack Wilshere.

"We will look to introduce new players to give the team new energy and I will use all my experience to take England forward," said Capello. "I am extremely proud to be the England manager."

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